How this Shopify Store Increased Purchase Frequency to 5x in One Quarter - And How You Can Do It, Too

Intro

In this article, you'll discover the secrets behind ZeitWunder’s loyalty strategy, which boosted their purchase frequency by 5x in their first quarter, got 20% of their sales to be driven by points redemption, and made customers fall in love with their brand even more!

We'll break down every step they took in an actionable way to help you create your own high-performing loyalty program.

Let's get cracking! 👊

Challenge

Talking to Thomas who’s Head of E-Commerce & Digital Marketing at ZeitWunder, he shared that their team was struggling with the common enemy of all Shopify stores:

• Struggling to keep customers engaged, leading to a disappointing retention rate
• Facing the challenge of one-time purchases with customers rarely returning for more
• The continuous struggle of trying to boost sales with a low customer retention rate

In the online cosmetics world, Thomas shared that the industry relies heavily on brand loyalty and high-frequency purchases. For ZeitWunder, it was extremely important to figure out how to motivate customers to come back for more.

As their team was in the process of migrating to Shopify, they were looking for a loyalty marketing solution that was made for Shopify to keep their lives simpler.

Initially, ZeitWunder tried email marketing, but it didn't yield the expected results.  Engagement was low and the strategy didn’t lead to customers staying or increased purchase frequency - which means they needed to explore other options.

So here’s how they were planning to fix it:

1. Encourage customers to spend more to reach higher levels → loyalty program based on levels and tiering
2. Provide customers with different redemption options they would enjoy → assess data to understand customer preferences and best reward choices

Here's exactly how they implemented the program that boosted their purchase frequency by 5x in only one quarter… and how you can do the same.

How they did it

As previously mentioned, ZeitWelt was looking for a built-for-Shopify loyalty app, ultimately selecting Gameball to get the job done.

Here's the exact X-step blueprint they used to increase purchase frequency by 5x and boost their redeemed points to over one million points.

Step 1 - Create levels for customers 

This is a quick step as they already had a strategy set for how they’d like to tier their customers. As a result, they could generate ideas for levels, criteria, names, and rewards.

Here’s how they chose to build their levels:

• Level 1 - Beauty lover: Receive 1 loyalty point and premium samples for every €1 spent
• Level 2 - All-round talent: Receive 2 loyalty points for every €1 spent. Required to spend 300 € total order value within 12 months
• Level 3 - Trendsetter: Receive 4 loyalty points for every €1 spent. Required to spend €600 total order value within 12 months.
• Level 4 - Style icon: Receive 6 loyalty points for every €1 spent. Required to spend €900 total order value within 12 months.
• Level 5 - Skincare VIP: Receive 8 loyalty points for every €1 spent. Required to spend €1,200 total order value within 12 months. 

For subsequent orders, this corresponds to a saving between 2%  and 8% through redeemable loyalty points.

To set this up, it takes a few clicks.

Build and launch your tiered program for free - no card required.

Step 2 - Set up Cashback Rewards

Zeitwunder chose to set up their pointing system as 1 point for every 1 Euro spent to keep it encouraging for customers. They also added extra points per Euro for every level they created as shown above.

They then made sure to give customers the freedom to redeem the number of points they’d like to use from their balance by using flat-rate redemption.

In practice, here’s how that looked like.

Launch your first cashback loyalty program for free - no card required.

Step 3 - Adding a referral program

Zeitwunder was keen on increasing their customer base so they made sure to provide rewards for both the customer and their referred friend. A 10 Euro voucher for each! They even went the extra mile in changing and translating the widget content to make sure the steps were clear to everyone using the app.

Zeitwunder’s game plan was to choose appealing rewards to motivate customers to refer again. This is where your historical data can play an important role and give you creative ideas.

Here’s how to set this up: 

1. Choose Your Reward: 

After logging into your Gameball dashboard,  go to Ways to Earn > Referrals.

Then, choose the reward for both the referrer and the referee. You can choose from one of the following reward types:

• Points
• Free Product
• Free Shipping
• Fixed Amount
• Percentage Based Discount

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2. Configure your referral rule: 

You can set rules for the referred friend to follow for a successful referral and reward. Click the Edit Icon under reward configuration to select the required action or rule. You can add additional steps, like making a purchase, for the friend to receive the referral reward. You can also customize reward criteria, such as rewarding players when their referred friends make their first purchase or reach a specific order amount.

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3. Set up a referral landing page

When a player makes a referral by copying their unique URL and sharing it with their friends, the friend will then click on the URL to be redirected to your platform. In this step, paste the URL you want the referrees to be redirected to. 

4. Activate your referral program!

Lastly, switch the “active” toggle on the referral landing page and you’re ready to go! 

Step 4: Launch the loyalty program, assess results

Once the job was done, all that was left for Zeitwunder to do was launch their loyalty program. The first task on their list was to assess the performance of their new program and see how things were going.


Finally, here are the results Zeitwunder achieved with its loyalty program.

1. 5x Purchase Frequency in One Quarter
2. 20% of Sales Achieved Through Points Redemption 
3. 306% increase in AOV in One Quarter
4. 121% Increase in ARPU (Average Revenue Per User) since the launch date

 Congratulations to Thomas and the Zeitwunder team, your work was brilliant.Not sure how to set up your first loyalty program? Schedule your free 1:1 strategy call with our expert, and let’s do this together. 

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